Coinspeaker
2 hours ago
1 0

BEARISH 📉 : Bitcoin Exchange Reserve Surges, Market Needs Fresh Demand

Bitcoin Price Movement

  • Bitcoin dropped to $74,000 after failing to maintain November lows, affecting short-term momentum.
  • Currently trading around $78,000 amid short-term market relief.
  • The 14-day Relative Strength Index indicates an oversold condition.
  • Spot trading volume increased, suggesting risk repositioning rather than new demand.

On-Chain Activity

  • Significant Bitcoin transfers to Binance from whales and mid-term investors.
  • 6-12 month-old coins moved approximately 5,000 BTC to Binance on Feb. 2, a first since early 2024.

    • Bitcoin exchange inflow by holder age | Source: CryptoQuant

  • Whale wallets transferred another 5,000 BTC to Binance, mirroring a spike from Dec. 18.

    • Bitcoin whale to Binance inflow | Source: CryptoQuant

Miner Activity

  • Miners moved about 175,000 BTC to Binance in January, with some days nearing 10,000 BTC transfers.

    • Bitcoin miner to exchange flow in January | Source: CryptoQuant

  • These transfers occurred as Bitcoin traded near $95,000 before declining to $78,000.
  • Increased supply could lead to price drops if demand remains low.

Market Conditions

  • Spot market conditions weak; Spot CVD at new lows, indicating sell-side dominance.
  • ETF outflows continue despite slowing, pointing to ongoing distribution.
  • Derivatives markets show reduced futures open interest and cooling funding rates.
  • A risk-off phase is evident as profitability declines and realized losses increase.